Copper slumps sharply amid heavy profit selling

MoM Team / Mumbai, Sep 11, 2017 01:06 AM IST

COMEX Copper slumped more than 3 percent on Friday, mirroring moves in crude oil futures as a massive correction from3 year highs continued. This bought the benchmark COMEX Copper to a low near $3 per pound. The worries about US auto demand after couple of heavy Hurricanes are triggering selling in the metal.

US equities also mostly stayed under pressure in last session. MCX Copper futures also dropped 3.30 percent to close at Rs 431.40 per kg.

Economic news remained mixed on Friday. Consumer credit in the US increased by more than anticipated in the month of July, according to a report released by the Federal Reserve on Friday. The Fed said consumer credit jumped by $18.5 billion in July after rising by a downwardly revised $11.8 billion in June. The bigger than expected increase in consumer credit came as non-revolving credit such as student loans and car loans soared up by $15.8 billion in July after climbing by $7.1 billion in June. Revolving credit, which largely reflects credit card debt, edged up by a more modest $2.6 billion in July after rising by $4.7 billion in the previous month.

The Fed said consumer credit increased by an annual rate of 5.9 percent in July, as revolving and non-revolving credit rose by 3.2 percent and 6.9 percent, respectively. Wholesale inventories in the US rose by more than anticipated in the month of July. The Commerce Department said wholesale inventories climbed by 0.6 percent in July, matching the downwardly revised increase in June.